POE.V - Pan Orient Energy

[rkbabang]

Pan Orient Energy Corp. L53-DD1 Oil Discovery- 779 BOPD

https://www.marketwatch.com/press-release/pan-orient-energy-corp-l53-dd1-oil-discovery--779-bopd-2018-11-29

 

"Pan Orient Energy Corp. ("Pan Orient") (POE - TSXV) is pleased to announce that the L53-DD1 exploration well is on a 90 day production test and currently producing at a steady state of between 778 to 784 barrels per day.."

[Cardboard]

"Oil sales, net to Pan Orient's 50.01-per-cent interest in the Thailand joint venture for Concession L53, were 210 barrels of oil per day for the first nine months of 2018, with funds flow from operations of $3.1-million ($54.31 per barrel)."

 

There will be some decline on these new wells but, should be nowhere near shale/horizontal.

 

So that one well is producing more net to POE than the entire L53 existing production. 2P NAV of L53 net to POE is $0.24/share. I don't think it is crazy to assume that this new development could be worth 2 to 3 times as much: already 2 wells drilled, producing and reserve life is longer than existing L53.

 

So essentially, development potential in Indonesia is essentially free or near free with cash on hand.

 

Cardboard

[sculpin]

http://hydracapital.ca/hydra-blog/pan-orient-oil-test-adds-backstop-to-anggun-high-impact-bet

 

:D

[rkbabang]

News on L53-DD2

"Pan Orient Energy Corp. ("Pan Orient") (POE - TSXV) is pleased to announce that the L53-DD2 appraisal well is on a 90 day production test and currently producing at a steady state of approximately 659 barrels per day ("BOPD") ... The best sands (AA, BB and CC) based on thickness and reservoir quality, have yet to be tested."

 

Pan Orient Energy Corp. L53-DD2 Oil Appraisal - 658 BOPD

https://www.marketwatch.com/press-release/pan-orient-energy-corp-l53-dd2-oil-appraisal---658-bopd-2018-12-03-81843835

[paperwerks]

Another positive update here:

 

http://globenewswire.com/news-release/2019/02/14/1725461/0/en/Pan-Orient-Energy-Corp-Operations-Update.html

 

Pan Orient is a Dhando type investment. Heads I don’t lose anything or I only lose a little and tails I win 5-10 times my money. And we will know the results of Anggun by June or July at the latest. The market is asleep on this.

[rkbabang]

 

Thailand L53-DD4 Well Confirms L53DD Oil Field Extension

http://globenewswire.com/news-release/2019/02/28/1744340/0/en/Thailand-L53-DD4-Well-Confirms-L53DD-Oil-Field-Extension.html

 

"Pan Orient Energy Corp is pleased to announce that the L53-DD4 appraisal well encountered an interpreted, combined 15.6 meters of net oil pay ..."

[cwericb]

About a year and a half ago I put this in the “file it and forget it” basket and only took a look at it again last week.

 

Interesting times indeed.

 

Stock price up 33% this month and 91% in the past twelve months. The potential is just developing and the downside risk is limited.

 

Am I not right in that the big bounce in the stock price this time around is based on actual test results compared to previous bounces that were mostly based on speculation?

[rkbabang]

About a year and a half ago I put this in the “file it and forget it” basket and only took a look at it again last week.

 

Interesting times indeed.

 

Stock price up 33% this month and 91% in the past twelve months. The potential is just developing and the downside risk is limited.

 

Am I not right in that the big bounce in the stock price this time around is based on actual test results compared to previous bounces that were mostly based on speculation?

 

Yes, there has been some recent good results in Thailand, but the potential in Indonesia isn't even priced in at all, not even as speculation.  This is a lottery ticket where you can get your dollar back if you don't win.

 

I agree with paperwerks above, the market is asleep.

 

 

[rkbabang]

PAN ORIENT ENERGY CORP.: 2018 Year End Financial & Operating Results

https://seekingalpha.com/pr/17444189-pan-orient-energy-corp-2018-year-end-financial-and-operating-results

 

""2018 was an excellent year for the Thailand operation with substantial increases in year-end reserves and production as a result of the L53-DD oil discovery made in October.  This was then followed up with the success of the L53-DD4 appraisal well confirming oil in a fault compartment that had been assigned possible reserves in the year-end 2018 reserve report. The success at L53-DD highlighted the hydrocarbon potential of the northern portion of Concession L53 and provided an increased understanding of the petroleum system in the immediate discovery area.  As a result of post discovery analysis, an aggressive four to five well exploration drilling program is planned for the remainder of 2019 with the first 2 wells to commence in July.

 

Approval of the L53-DD Production License is anticipated in April 2019, at which point the L53-DD1 & L53-DD2 wells will be brought back on stream.  A 90 day test application has been submitted for the recently completed L53-DD4 well with approval anticipated shortly. The L53-DD3 appraisal well is currently drilling through the target zone to a total depth that will be reached shortly.

 

Construction for the Anggun-1X exploration well in Indonesian East Jabung PSC has been making steady progress despite heavy rain at times.  The operator has indicated rig mobilization is anticipated to commence in early May with drilling to start in late June to July, subject to weather, of course.  Of note, press reports indicate that Repsol, the operator of the East Jabung PSC, has made a significant gas discovery in the nearby Sakakemang PSC.  This large discovery has resulted in significant interest by industry players and has highlighted the potential for large discoveries still to be made within this region of South Sumatra."   

[rkbabang]

"the L53-DD3 appraisal well encountered an interpreted combined approximately 38.5 meters of true vertical thickness net oil pay ... This is the thickest net oil pay encountered in any of the L53-DD fields to date."

 

https://www.globenewswire.com/news-release/2019/03/18/1756295/0/en/Pan-Orient-Energy-Corp-Thailand-L53-DD3-Appraisal-Well.html

 

[sculpin]

 

PAN ORIENT ENERGY CORP.

 

POE (CAD$1.86) – Target: $3.25 – BUY

 

Appraisal Well Encounters Thick Oil Pay

 

Action: Maintain BUY And $3.25 Target

 

This morning, Pan Orient (“POE”) announced that the L53-DD3 appraisal well in Thailand was successful. We maintain our BUY recommendation and $3.25 target price on the company’s strong financial position, growing production base in Thailand and the high-impact exploration potential of the Anggun-1X exploration well in Indonesia.

 

Details: Drilling Update

 

L53-DD3 Appraisal Successful: POE holds a 50.01% interest in Concession L53 which contains the L-53 DD oilfield discovered by the company in October 2018. A two well appraisal program of the L-53 DD field commenced on February 11, 2019. On February 28, 2019, POE announced that the L53-DD4 appraisal well was successful and encountered 15.6 metres of net pay with the AA2 and BB/CC sandstones. Today, POE announced that the L53-DD3 appraisal well encountered five separate sandstone reservoirs with combined net pay 38.5 metres. This is the thickest net oil pay encountered in any of the wells drilled into the L53-DD oil fields to date. The top of the main BB/CC sand came in approximately 9.3 meters high to that seen at L53-DD2 appraisal well drilled in November 2018. The L53-DD3 appraisal well also encountered oil pay in the same AA2 sand, which was discovered by at L53-DD4 appraisal well.

 

Two Appraisal Wells To Test: POE has submitted applications for a 90 day production test for both the L53-DD3 and L53-DD4 appraisal wells. Testing of the L53-DD4 well is expected to commence shortly, which should be followed by the L53-DD3 well.

 

Thailand Exploration:

 

In late Q3/19 or early Q4/19, POE plans to commence a four to five well exploration program. The first two wells will target seismically defined prospects located near to the DD field.

 

Impact: Positive. Maintain BUY And $3.25 Target

 

To date, POE has drilled four successful wells into the L-53 DD oilfield. Two wells (L53-DD1 and L53-DD2) have tested high rates of oil and two more wells (L53-DD3 and L53-DD4) are expected to test shortly, which could provide near term catalysts for the stock. The company also has an active exploration program planned for Thailand which could add new reserves and production later this year. We maintain our BUY recommendation on the company’s growing production and cash flow base in Thailand, as well as the tremendous resource potential of is high impact Anggun-1X exploration well in Indonesia.

 

Mackie Research Capital Corporation

[cwericb]

After disappointments in India a year or so ago, everything in Thailand seems to be meeting or exceeding expectations. It will be very interesting to see what Indonesia will bring. Stock price has doubled in the past six months mostly on results and not speculation.

[Cardboard]

What are you doing in this stock leftie? This is oil & gas going against your principles you know? Unless you have no morality when it comes to money?

 

 

[wachtwoord]

What are you doing in this stock leftie? This is oil & gas going against your principles you know? Unless you have no morality when it comes to money?

 

Please keep the politics in the politics section. Let's keep the investment section based on merit of investment opportunities rather than anything else.

[cwericb]

Cardboard, First off I have no idea of what you are talking about, but there you go with the names again. What does your comment have to do with POE? Now regarding your remarks, as a longtime member of the Conservative Party calling me a “lefty”shows just how far to the extreme right you must be. Each to his own, and also Watchwood is correct.

 

I think this company has a lot of real potential. Only a small position for me but it is fun to watch.

[rkbabang]

Pan Orient’s Anggun-1X Well Could Be Huge

https://mp1capital.com/pan-orients-anggun-1x-well-could-be-huge/

 

"Earlier this evening, I got the chance to talk with Jeff Chisolm, CEO of Pan Orient Energy (TSXV – POE), who, like the company, is based in Bangkok, Thailand. The main purpose of my phone call was to get an update on road construction.  And I got that.  Basically, the end of June schedule provided in the last corporate update still stands.  And Repsol/Pan Orient will handle any potential Ramadan related delays by mobilizing the rig on site in early May.  Like clockwork, the rainy season in South Sumatra usually stops in the 3rd or 4th week of April.  If that’s the case, Jeff doesn’t foresee any major delays to the late June schedule for the finishing of road construction and the end of June/early July spudding of the Anggun-1X well."

[cwericb]

Read that a few days ago. Not likely Jeff Chisolm going to say anything too negative but he wouldn't be involved if he didn't think they had a good chance of success.

 

Bought a little more today.

 

Don't think there's a lot to lose here. Company is probably worth close to the present share price without including what may come out of Anggun-1X. Even before the Thailand results, the downside was around $1.00 so perhaps present downside is $1.40-1.50? Some optimistically see potential in the double digits, but even if it topped out at $3 or $4 it seems well worth the risk. It is still not a very large position for me but if it hits it would would be nice as it is tax protected in my TFSA. It is fun watching this though.

[cwericb]

New Press Release:

 

CALGARY, Alberta, April 25, 2019 (GLOBE NEWSWIRE) --

 

THAILAND

Onshore Concession L53 (Pan Orient Energy (Siam) Ltd., in which Pan Orient has 50.01% ownership)

 

Pan Orient Energy Corp. (“Pan Orient”) (POE – TSXV) is pleased to announce that the L53-DD Production License ("PL") has been approved by the Government of Thailand.  This was in addition to a number of other approvals that were required to commence long-term production from the L53-DD field discovery made in October 2018.  The primary term of the PL is 20 years.

 

Four wells have been drilled and completed within the L53-DD field since October 2018 with two of these, L53-DD1 and L53-DD2, producing for an approximately 90 day test period that ended on February 18 and February 23, 2019, respectively.  Two additional wells, L53-DD4 and L53-DD3, were then drilled in 2019; however 90 day test approval periods were not granted by the Government of Thailand, likely due to the advanced stage of the PL approval process.  All four wells are now on long-term production.

 

At the time of shut-in, the L53-DD2 well was producing 783 BOPD from the base of the BB/CC sand and the L53-DD1 well was producing 470 BOPD from the BB/CC sand with perforations in close proximity to the sand's defined oil water contact.  Both wells were located within the December 31, 2018 proved and probable reserves envelope for the BB/CC sandstone.

 

L53-DD2 production has recommenced production from the same perforation interval within the BB/CC sand that produced prior to shut-in.  L53-DD1 has now been perforated within the AA sand and will represent the first production from this sandstone zone that had only probable reserves (no proved reserves) assigned to it in the December 31, 2018 reserves report.  L53-DD4 has been perforated in the BB/CC sand and will commence production from an area that had only possible reserves assigned to it in the most recent reserves report.  L53-DD3 will commence production from the DD/EE sand within the proved and probable reserves envelope and in close proximity to the L53-DD2 well.  This represents the first production from the L53-DD3 and L53-DD4 wells since they were drilled. 

 

A Thailand production update will be provided to Pan Orient shareholders in approximately seven to ten days once production from the wells has stabilized.   

[rkbabang]

New Press Release:

 

CALGARY, Alberta, April 25, 2019 (GLOBE NEWSWIRE) --

 

THAILAND

Onshore Concession L53 (Pan Orient Energy (Siam) Ltd., in which Pan Orient has 50.01% ownership)

 

Pan Orient Energy Corp. (“Pan Orient”) (POE – TSXV) is pleased to announce that the L53-DD Production License ("PL") has been approved by the Government of Thailand.  This was in addition to a number of other approvals that were required to commence long-term production from the L53-DD field discovery made in October 2018.  The primary term of the PL is 20 years.

 

Four wells have been drilled and completed within the L53-DD field since October 2018 with two of these, L53-DD1 and L53-DD2, producing for an approximately 90 day test period that ended on February 18 and February 23, 2019, respectively.  Two additional wells, L53-DD4 and L53-DD3, were then drilled in 2019; however 90 day test approval periods were not granted by the Government of Thailand, likely due to the advanced stage of the PL approval process.  All four wells are now on long-term production.

 

At the time of shut-in, the L53-DD2 well was producing 783 BOPD from the base of the BB/CC sand and the L53-DD1 well was producing 470 BOPD from the BB/CC sand with perforations in close proximity to the sand's defined oil water contact.  Both wells were located within the December 31, 2018 proved and probable reserves envelope for the BB/CC sandstone.

 

L53-DD2 production has recommenced production from the same perforation interval within the BB/CC sand that produced prior to shut-in.  L53-DD1 has now been perforated within the AA sand and will represent the first production from this sandstone zone that had only probable reserves (no proved reserves) assigned to it in the December 31, 2018 reserves report.  L53-DD4 has been perforated in the BB/CC sand and will commence production from an area that had only possible reserves assigned to it in the most recent reserves report.  L53-DD3 will commence production from the DD/EE sand within the proved and probable reserves envelope and in close proximity to the L53-DD2 well.  This represents the first production from the L53-DD3 and L53-DD4 wells since they were drilled. 

 

A Thailand production update will be provided to Pan Orient shareholders in approximately seven to ten days once production from the wells has stabilized.   

 

4 new wells online and producing. ... and yet the stock doesn't move.  The market is still asleep at the wheel here.

 

[bizaro86]

the L53-DD1 well was producing 470 BOPD from the BB/CC sand with perforations in close proximity to the sand's defined oil water contact. 

 

I'm starting to get interested here, but am wondering if they publish much technical information? If anyone has anything I'd love a link.

 

Because a production rate from perfs near an oil-water contact isn't in any way representative of a long term production rate, and is almost always NOT where you would want to perf an oil well...

[sculpin]

Energy Summary for April 29, 2019

 

2019-04-29 17:21 PT - Market Summary

 

by Stockwatch Business Reporter

 

Elsewhere in Southeast Asia, Pan Orient Energy Corp. (POE) lost one cent to $1.87 on 1,500 shares, giving back the one cent it added on Friday after receiving a production licence for its L53-DD field in Thailand. Pan Orient applied for this licence in December, shortly after drilling the field's initial discovery well and a follow-up appraisal well. It then drilled two more appraisal wells in early 2019. With the receipt of the licence, all four wells have been put on long-term production. Pan Orient did not disclose the rates of production and says it will not do so for several more days, in order to give the rates time to stabilize. It did say, however, that the two 2018 wells were respectively flowing 470 and 783 barrels of oil a day before they were shut in to await the licence. For context, Pan Orient's total production (all of which comes from other fields in Thailand) averaged 366 barrels a day in the fourth quarter of 2018. The L53-DD field was a rare bright spot for energy investors during that quarter, allowing Pan Orient's stock to rise to about $1.50 at the end of the year from around $1 in October. The stock has since kept rising to its current level of $1.87.

 

In addition, the Thai results were a lovely distraction from continuing delays at an even more intriguing project, East Jabung in Indonesia. This is a joint venture between Pan Orient and the above-mentioned Repsol. They have been working together since 2015 and have drilled two exploration wells so far. Although neither well was successful, Pan Orient has consistently maintained that it is "very encouraged" by East Jabung and its "significant indications" of hydrocarbons. The joint venturers were originally hoping to spud a third exploration well in the third quarter of last year, but are nearly a year behind schedule and are hoping to finally start drilling in late June or July. In February, Repsol made a sizable gas discovery at the nearby Sakakemang block (not owned with Pan Orient). Pan Orient trumpeted this discovery (which it had no part of) as having "highlighted the potential for large discoveries still to be made within this region." It is clearly hoping that its next East Jabung well will make one of those discoveries. Investors should find out soon enough. The well is expected to take about a month to drill and, if it finds anything, a further three weeks to test. The drilling and testing combined should cost about $9-million (U.S.) net to Pan Orient's interest. Pan Orient had a healthy $32.5-million in working capital as of year-end 2018.

[cwericb]

Here is today's press release. I'm certainly no expert but this looks fairly positive so far. Perhaps someone here could translate some of the technical aspects for those results.

 

CALGARY, Alberta, May 08, 2019 (GLOBE NEWSWIRE) --

 

THAILAND

 

Onshore Concession L53 (Pan Orient Energy (Siam) Ltd., in which Pan Orient has 50.01% ownership)

 

Pan Orient Energy Corp. (“Pan Orient”) (POE – TSXV) is pleased to announce that Concession L53 oil production has averaged 2,824 BOPD (1,412 BOPD net to Pan Orient's 50.01% equity interest) from April 27 to May 6, 2019 with 2,468 BOPD from the four L53-DD wells that commenced stable production on April 27, 2019.  An additional approximately 40 BOPD has been shut-in during the same period due to temporary trucking constraints.

 

Initial production results for the three wells producing for either the first time (L53-DD3 & L53-DD4) or from a new zone (L53-DD1) are:

 

    L53-DD3 has averaged 570 BOPD of 23.5 API oil with a BS&W of 3.79% through 4.2 meters of perforations between a true vertical depth ("TVD") of 1112.7-1116.9 meters at the top of the DD/EE sand utilizing an electrical submersible pump up to May 2 when the well had been shut-in pending a workover that will perforate the upper five meters of the BB sand. This workover is anticipated to be completed shortly and a production update will be provided to shareholders after production stabilizes from the BB sand.

 

    L53-DD4 has averaged 729 BOPD of 23.8 API oil with a BS&W of 11.52% through four meters of perforations near the base of the BB/CC sand between a TVD of 1081-1085 meters utilizing an electrical submersible pump set at 1,499 meters measured depth (“MD”) and current fluid level at 394 meters MD.

 

    L53-DD1 has averaged 514 BOPD of 23.5 API oil with a BS&W of 2.36% through four meters of perforations between a TVD of 960.9-966.5 meters starting at the top of the AA sand utilizing a beam pump set at 977.3 meters MD and current fluid level at 229 meters MD.

 

In addition, L53-DD2 recommenced production from the BB/CC sand and has averaged 883 BOPD.

 

Test results are not necessarily indicative of long-term performance or of ultimate recovery. Future decline rates and recovery factors will be determined to a large extent by whether or not aquifer support is present, and to what degree, in each of the producing zones.

 

Current activities are focused on the L53-DD3 workover and a multi-well exploration/appraisal drilling program that is expected to commence in late July to early August 2019, targeting exploration prospects offsetting the L53-DD field and appraisal drilling at L53-B.  A second multi-well exploration drilling program focused mainly in the L53-DD field area is anticipated in late 2019 to early 2020 subject to the timing of required Government of Thailand approvals.

 

INDONESIA

 

East Jabung PSC (Pan Orient 49% & Non Operator)

 

Pan Orient has been informed by the operator of the East Jabung Production Sharing Contract (“PSC”) that the estimated drilling rig mobilization date of the Anggun-1X exploration well has been revised to approximately July 1, 2019 with drilling to commence approximately August 1 as a result of continued rain.  There has been only thirteen days without rain between March 17th and May 6th, however six of the last nine days since April 29 have been without rain.  In most years, rain is expected to gradually decrease from the end of April onward.  Overall, construction for the Anggun-1X access road has been more heavily impacted than was the case of the earlier Ayu-1X exploration well due to the construction method used.  The Anggun-1X access road is a permanent road, as opposed to the temporary rig mat road that was constructed for Ayu-1X, which allows for rapid follow-up appraisal drilling in the event of Anggun-1X success.   

[rkbabang]

Could be significant buy backs coming.

 

"Pan Orient will be authorized to purchase, for cancellation, up to 4,504,064 of its common shares (10% of the public float), subject to a maximum of 1,098,008 common shares (2% of the 54,900,407 issued and outstanding common shares) during any 30 day period"

 

https://stockhouse.com/news/press-releases/2019/05/10/pan-orient-energy-corp-normal-course-issuer-bid#G1kijxaPR9Rkd818.99

 

[sculpin]

Believe POE netback's are pretty great at the 1,400 bbl/d level with Brent at $70 level. Probably at least $40/bbl US leading to $75K CF a day or about $27mm Cdn annually.

[Cardboard]

Seems we just had a technical/chart related crash on POE and bought more.

 

Cardboard